REDCAR and Cleveland Council could close one of its three key office sites in a further money-saving exercise.

The local authority has begun a review of the future of Redcar and Cleveland House and Seafield House, which form part of its headquarters in Redcar, along with Belmont House in Guisborough.

Like many employers the council has adopted a ‘hybrid’ method of working during the coronavirus pandemic with many staff working from home, leaving the buildings under occupied.

While Redcar and Cleveland House belongs to the council, Seafield House and Belmont House are both leased, having been built with expensive PFI (private finance initiative) contracts.

The council still has an estimated £14m to pay on the leases with the final sums being payable in May 2027.

A report examining the council’s financial resilience suggested it could seek an early termination of the contracts if this proved possible.

It said: “It is recognised that occupancy is quite low and the council has too many office buildings.”

The report said Belmont House cost £642,000 a year to run, Seafield House £524,000 and Redcar and Cleveland House £280,000.

When full the council buildings can house between 900 and a thousand staff with Redcar and Cleveland House the biggest of the three sites.

In 2020 the council’s cabinet green-lighted a new strategy for council assets which aimed to reduce the costs of the management of the council’s estate through reducing the overall number of land and buildings.

Another objective was ensuring that the council’s assets were well maintained, reducing the costs associated with any unplanned repair or maintenance work.

Meanwhile, a new corporate plan published last year also made clear the aim of “rationalising” assets and buildings.

The latter is likely to lead to the sharing of some services under the same roof, although the council sought to reassure residents by stating in the plan that where possible face-to-face contact with council staff would be maintained.

The report said the council estimated it would generate £1.95m in capital receipts from the sale of seven sites in 2021/22, while more sites, which it did not identify, were planned to be disposed of.

The council revealed last year its desire to move out of an existing depot building in Laing Close, Grangetown, from where its highways and neighbourhood teams operate, by expanding its Fairway House depot, off the Trunk Road at Dormanstown, and transferring staff there.

Separately, as a result of a successful bid to the Government’s Future High Street Fund, the current Loftus library building is set to be demolished, with the site to be developed into a car park.

The library will move across the road into the council’s existing youth centre and family hub building, which is getting a new extension to house the library service.

This it is estimated could save £567,785 in maintenance costs over ten years, along with £50,180 in annual running costs.

A council spokesman said: “In June 2020 the council’s Cabinet agreed an asset strategy [plan] which articulates the approach that the council will take to managing its land and property assets, including the creation of multi-use facilities to reduce carbon emissions, the cost of the council’s estate and to facilitating modern flexible ways of working.

“In addition, the council is currently in the middle of a new ways of working pilot which is expected to help determine the future working model for the council, be it home-based, office-based or a combination. 

“At the conclusion of the pilot, the council will be in a better position to determine its future office accommodation needs.”

The Local Democracy Reporting Service approached Unison, which represents a number of staff at the council, about the potential closure of one of the office blocks, but a representative said it did not have a comment to make at this time.